Television digest with AM-FM reports (Jan-Dec 1951)

Trade Report November 10, 1951 PRICE HIKES NEXT? TRADE HOLDING FIRM: Lots of talk about TV set price increases in the air — now that inventories are moving nicely and current production is limited by materials restrictions. But only Sylvania has formally posted price hikes as yet, very slight (Vol. 7:43), which it says haven't slowed retail sales a bit. "Level of normalcy" apparently has come to the TV trade, though it isn't an old enough business yet to know what's really normal — and certainly comparisons with last year's "feast" or the recent spring & summer "famine" aren't fair. What's happening is aptly put by RCA Victor's home instrument dept, v.p.general manager Henry P. Baker; "Business is conservatively strong," said he, "just where it should be to be most effective — at the consumer level. As far as we're concerned, it's exceedingly strong. We're shipping all we can make." That's about what the other major producers will tell you, too. The recent cries of distress among wholesaler-retailers have all but subsided. Trade statistics continue favorable. Week ending Nov. 2 saw 107,361 TVs produced (only 427 private label), about same number as preceding week (Vol. 7:44). That brings total for first 5 weeks of fourth quarter to just over 500,000. Factory inventories fell about 17,000 units to 337,499, nice drop from Aug. peak of 768,766. Week's radio output was 205,777 (8628 private), about 18,000 down from the preceding week, with factory inventories totaling 331,688, only 4000 down. Radios were 117,574 home receivers, 19,687 portables, 66,516 auto. NEW RULES PERD3IT PRICE CEILING ROOSTS: TV-radio and other electronic equipment and parts manufacturers can get higher price ceilings — along with manufacturers in many other industries — as result of this week's revision of 2 OPS regulations. Don't expect big price hikes soon stemming from new price rule. But it does clear way for substantial increases when materials pinch forces costs up, slashes profit margin per set (see story above). Many TV-radio manufacturers' list prices, incidentally, are still below the old price ceiling levels. Manufacturers may now adjust ceiling prices to reflect cost increases from pre-Korea to July 26, 1951, as voted by Congress when it approved Capehart Amendment to Defense Production Act. TV-radio and most components manufacturers are covered by CPR 22 ; transmitters , industrial electronics, etc. come under CPR 50. All manufacturers who haven't yet computed ceilings under CPR 22 or 30 must do so by Dec. 19 under new rules. Those v;ho already have filed under those orders may calculate their ceiling price adjustments now or at any time in future, and use the new ceilings as soon as OPS has received their applications. Any price increases resulting from new ceilings will be passed along to the public, since Herlong Amendment to Defense Production Act guarantees wholesalers and retailers their customary percentage markups. Capehart and Herlong ceiling hikes will also be reflected in the tailored ceiling regulations for TV-radio industry (Vol. 7:43), now in the mill, to replace CPR 22. Special regulations permitting ceiling price boosts for such services as TV-radio repair shops are nov; in preparation. CONSERVATION-SOME LONG-RANGE FACTORS: No "ersat z" TVs now or in near future — as we note in article on page 2 — but beyond mid-1952, what? Prospects are that ; If materials squeeze stiffens — and there's no convincing reason to believe it won't — and if demand for TV sets is high, mobilization factors may dictate real changes in concept of TV design. Some stern voices in govt, production agencies warn the TV-radio industry; Prepare for the worst, or you may get stuck. "They'd better start planning on making radical changes." one of them told 7